Question

Which of the following is a developmental functions of NABARD?

• A. It inspects the working of RRBs and Cooperative banks of all types
• B. It provides long-term credit to State Land Development Banks
• C. It provides short term credit to state cooperative banks, RRB's and other financial institutions
• D. It acts as an agent of Government and RBI for monitoring work in agricultural related areas

Answer 1

The correct option is D It acts as an agent of Government and RBI for monitoring work in agricultural related areas

NABARD has taken over the refinancing from the RBI with respect of state cooperative banks and regional rural banks. It is an apex organisation with respect to all the rural developmental activities. Hence, it plays as an agent of government and RBI by refinancing and giving agricultural credit.